National Promises to Use International Visitor Levy to Replace Bed Tax Proposal

National wants to redirect almost NZ$400 million from New Zealand’s international visitor levy to local councils, presenting the plan as an alternative to the bed tax it opposes.

The party would distribute NZ$86 million to councils in the 2027-28 financial year, rising to NZ$106 million in 2030-31. Each council’s share would depend on the number of international guest nights recorded in its region. Under National’s calculations, Auckland Council would receive about NZ$19 million, or 22.3% of the first allocation. Queenstown-Lakes District Council would receive about NZ$17 million, based on a 19.9% share.

The plan is based on a four-year levy revenue forecast of NZ$985 million. After setting aside NZ$100 million a year for conservation and NZ$50 million a year for a Tourism Priorities Fund, National’s policy document says NZ$385 million would remain for councils.

The Tourism Priorities Fund would support tourism growth, while the conservation allocation would offset Crown baselines. Because the proposed annual conservation spending is below the amount normally committed, the policy would create an operating cost of about NZ$105 million over the four-year forecast period. National says it would cover that cost through next year’s operating allowance in the Budget.

National finance spokeswoman Nicola Willis also committed to leaving the levy unchanged for three years. International visitors would continue to pay NZ$100 each under the proposal.

The announcement follows the Government’s decision not to proceed with a bed tax, which would have added charges for people staying in accommodation. Some mayors, including Auckland’s Wayne Brown, strongly supported the idea. Although the Government had agreed to explore the tax in its deal with Auckland Council, Prime Minister Christopher Luxon later said it would not be implemented because of concerns about the costs for New Zealanders visiting popular areas.